Overview

Etsy has begun sending discount codes straight to a curated group of shoppers, with the marketplace covering the cost instead of the individual sellers. The latest email, titled “15% off just for you,” arrived on a Tuesday and offers up to $20 off any order placed with a shop that accepts Etsy gift cards. Sellers need to understand this platform‑funded coupon model because it directly affects pricing strategies, promotional calendars, and the impact of Etsy’s recent fee increase.

Key Points

• Coupon Types — Etsy distinguishes between “shop coupons,” which sellers create and fund, and “Etsy coupons,” which the platform generates and pays for, delivering them directly to selected buyers.
• Discount Structure — The current promotion provides a 15 % discount with a maximum savings of $20 and does not impose a minimum purchase requirement.
• Expiration Window — Each code stays valid until February 17, 2026, giving recipients more than two years to use the offer.
• Eligibility Criteria — The coupon applies only to shops that list Etsy gift cards as an accepted payment method and cannot be combined with any other discount, including seller‑issued coupons.
• Fee Context — Etsy introduced this coupon program after raising its transaction fee from 5 % to 6.5 % in April 2022, promising to allocate the additional revenue to broader marketing efforts.
• Buyer Targeting — The platform’s algorithm selects buyers based on recent activity, purchase frequency, and engagement signals, ensuring the coupon reaches shoppers most likely to convert.

How Etsy Coupons Work

1. Buyer Selection — Etsy’s internal engine evaluates metrics such as past order history, browsing patterns, and account activity to compile a list of eligible shoppers. For example, a buyer who purchased three handmade candles in the past six months might receive a personalized code like “SHOP15” via email.
2. Code Redemption — At checkout, the buyer enters the supplied code, and the system automatically deducts up to $20 from the order subtotal, excluding tax and shipping. If a shopper adds a $120 ceramic vase to the cart, the 15 % discount reduces the price to $100, and the $20 cap does not come into play because the calculated discount is $18.